Social change, budgets, work pressure: 5 interesting stats to start your week

91% of shoppers say they see too many social media ads

A strong aversion to ads on social media is emerging among consumers, 91% of whom say there are too many ads on social platforms.

According to Capterra’s 2024 Elusive Online Customer survey, more than a third (37%) of consumers have blocked specific advertising, and 35% have unfollowed a particular brand over the past 12 months.

The study finds that consumers are taking steps to protect their privacy when shopping online. Rejecting or clearing cookies (51%), using guest checkout (46%) and paying with digital wallets (42%) are all popular tactics.

At the same time, 57% of respondents looked up information about a product and a further 20% purchased one or more products in the last year in response to social media advertising.

Source: Capterra

Consumer confidence at highest level in nearly three years

The General Election and the Euros football tournament have coincided with an uptick in consumer confidence.

The GfK Consumer Confidence Index for July shows confidence rising for the fourth consecutive month, reaching -13, its highest level since September 2021.

The major purchase index saw a substantial seven-point climb to -16, indicating that people are more open to spending on big-ticket items. This measure stood at -32 in July last year.

However, GfK client director Joe Staton notes an “underlying note of reticence” on the wider economy over the last 12 months, where consumers record a static score of -32, as well as when consumers look ahead to the coming year (-11). These scores are higher than July 2023, when they were -58 and -33, respectively. 

“Those figures will need to increase before we see positive headline scores,” he says. “Nobody can predict when this will happen, especially after the economic and financial battering so many people have experienced in the past three years.”

He adds that marketers should be doing the groundwork to ensure their brands are prepared to capitalise on improved consumer confidence when it arrives.

Source: GfK

Marketing budget increases at highest level for a decade

UK marketing budgets have grown at the fastest levels seen for a decade, in line with a brightening economy and reduced inflation, according to the latest IPA Bellwether report.

The quarterly report shows a budget uplift across all main categories, marking the strongest upwards revision since the first quarter of 2014. A net balance of 15.9% of companies surveyed reported budget increases in the second quarter of this year, compared with 9.4% in the first quarter.

Main media budgets increased by 3.5%, as 14.8% of respondents moved spending upwards. Events continued to be the main area of marketing budget growth, up 17.2%. Investment in events marketing has increased every quarter since early 2022.

Following last quarter, market research budgets increased for the second time in a row, reaching 3.2%, compared to 1.4% in Q1, making the second-highest increase since 2021.

Sales promotions budgets grew for the third consecutive quarter – rising from 4.4% in January to 6.9% – signalling brands’ ongoing strategy to cut prices in a bid to drive sales. This latest quarterly increase in promotional sales has exceeded the projections made by Bellwether panellists for their 2024/25 budget, with a net balance of 6% anticipating further growth.

S&P Global Market Intelligence principal economist Joe Hayes says that the General Election had the potential to create decision-making paralysis, but that this had not happened.

“A strong performance by the UK economy so far this year, in tandem with falling inflation and the expectation of an imminent interest rate reduction by the Bank of England, has helped lift confidence, providing more fertile grounds for companies who wish to invest in their brands and position themselves for long-term growth,” he says.

Source: IPA Bellwether

Four in 10 says advertising drives positive social change

People are feeling increasingly positive about the social contribution of advertising, a sentiment that is most prevalent in younger generations and minority ethnic groups.

A new report from the Advertising Association and industry think tank Credos finds there has been a 10 percentage point increase in those who see advertising as a force for positive social change over the past three years. The measure is up from 34% in 2021 to 44% in the first half of 2024.

The figure rises to 50% in the 18 to 34 age group and 58% among ethnic minority respondents, compared to just 28% of those aged 55+ and 37% of white respondents.

More than a third (34%) agree that advertising has had a major impact on how they think about issues such as sustainability.

“This report is in part a celebration of the brilliant work that is already being done, but it is also about reaffirming the industry’s commitment to work that improves society,” says Alessandra Bellini, president of the Advertising Association and former top marketer at Tesco.

Source: Advertising Association

Work pressure affecting marketers’ health

More than two-thirds (69%) of US B2B marketing departments have been asked to do more with smaller budgets in the last year, while 76% are experiencing pressure due to race to succeed with AI, according to a new study from CMO Huddles and Bospar.

The research finds 80% of the marketers have found less time for exercise, 70% have taken less time off, and half are eating less healthily; meanwhile, 40% have gained weight and 30% have experienced a reduction in sexual activity.

More than two-thirds (69%) of respondents believe that the industry is currently in a recession, 61% feel the overall employment rate doesn’t reflect what is happening in their industry, and 62% feel stock market gains are out of sync with the reality of their industry’s performance.

Source: CMO Huddles and Bospar